Congress Loses Ardor for Deficit Reduction

A few weeks ago, members of Congress on both sides of the aisle yelled about the need for deficit reduction. Those screams have been quieted, as Democrats and Republicans alike fight over what tax cuts to implement, The Hill reports.

Republicans favor extending Bush-era tax decreases for everyone, while the Democratic leadership wants to preserve them only for people with annual income of less than $200,000.

“They are both proposing to increase the deficit, not reduce the deficit,” Diane Lim Rogers, chief economist for the nonpartisan Concord Coalition, a budget watchdog, told The Hill. The deficit is forecast to hit $1.34 trillion for the year ending Sept. 30.